Monday, December 22, 2014

Some Thoughts About Facebook's Long Term Strategy

I wanted to share with you an article (In French) I found about Facebook's Strategy for the next 15 years.

Here are the bullet points:
- Mobile as the heart of the strategy: Social media users migrate more and more to a mobile usage. That means applications must be developped on this channel to keep on growing their data base. The goal of Facebook in 5 years from now is to convert its users to its other mobile applications, such as WhatsApp, Instagram, Messenger, and Search. And then only to monetize this audience. This is this point that annoys mean. I mean, Facebook has already reached a large number of users, billions are using the service, it is now a public company, and is actually experiencing difficulties to keep some of its audience that are not using Facebook anylonger. I don't know if it is still time to grow the audience first, and then seek for monetization systems. Facebook needs to be profitable ASAP, in order to leverage these profits in new projects.

Splitting Facebook's Activites in several applications. The goal is to provide a better user experience. Indeed, when you have such a big Facebook activity, it becomes sometime overwhelming. It will probably also allows to have more advertizing product to market in order to get revenues out of it. Mark Zuckerberg believes that the different usage of Facebook actually respond to different target, with different interests. This is also something that is scaring me. Indeed, the Internet has based its success on the accessibility, and the freedom it allowed. But if Facebook really starts to master all the component of people's relationship online, Facebook would become a sort of private web, which everybody used and hence would be forced to use. 

Allowing The Most To Access The Internet: Mark Zuckerberg has goals to provide Internet to poor countries in order to the most people to access its service, which is something cool. 

The good thing about this stratgegy:

It is long term, it has a real vision. And I believe it is based on a good strategy, on the right path.

The bad thing about this strategy:
This strategy still delays the time when Facebook would become really profitable. I believe that Facebook has already mastered its competition, and can now focus on its business modell. Its IPO was meant for that reason. But Mark Zuckerberg don't really expect any revenues before a dozen of years... It is very risky.